Form 1120-S Preparation

Agenda

Define S Corporations and the Purpose of Form 1120-S

• Electing and Terminating S Corporation Status and Relief for Late Filed Election
• Report Income, Gains, Losses, Deductions, Credits, and Other Information From the Operations of an S Corporation
• Pass-Through Concept and K-1 Function; Due Dates and Extensions

Recent Changes to Form 1120-S and Associated K-1

• Schedules K-2 and K-3 Provide More Clarity for Shareholders on Determining Tax Liability With Respect to Items of International Tax Relevance
• Form 7203 Replaces Worksheet for Figuring a Shareholder's Stock and Debt Basis
• New Items Added to Schedule K-1, for Corporation's Number of Shares and Cash Contributions

1120-S Front Page and Schedule B

• Trade or Business Income and Expenses
• Situations When an S Corporation Pays Tax - Excess Net Passive Income or LIFO Recapture
• The Purpose of All Those Schedule B Questions

Schedule K and K-1s

• Separately Stated Items
• Correlation of Schedule K to the Shareholder's K-1s
• Allocation Rules and Reporting

Schedule K-2 and K-3s

• Additional Insight on Foreign Sourced Income and Expenses
• Correlation of Schedule K to the Shareholder's K-1s
• Sourcing Rules and Reporting

Schedules L, M-1, and M-2

• Schedule L - Balance Sheet per Books
• Schedule M-1 - Reconciliation of Income (Loss) per Books With Income (Loss) per Return
• Schedule M-2 - Analysis of Accumulated Adjustments Account, Shareholders' Undistributed Taxable Income Previously Taxed, Accumulated Earnings and Profits, and Other Adjustments Account

Credits

Faculty

John T. Alfonsi, CPA/ABV/CFF, CFE, CVA, MST

Cendrowski Corporate Advisors

• Managing director of Cendrowski Corporate Advisors
• Practice focuses on taxation of high-net-worth individuals and investment entities, including partnerships and S corporations
• Adjunct professor at Walsh College, where he teaches courses in their Masters of Science in Taxation program (partnership taxation and tax accounting)
• Recognized valuation and economic damages expert in federal and various state circuit courts
• Frequent speaker for the Michigan Association of Certified Public Accountants on topics covering taxation, business valuation, and forensic accounting
• Member of the AICPA, MICPA, ACFE, and NACVA
• M.S. degree in taxation, Walsh College; B.A. degree in business administration, University of Michigan-Dearborn
• Can be contacted at [email protected] or 866-717-1607